Amazon is excluding its new competitor Temu from its price searching algorithm that checks if products sold on its platform are competitive with rivals, saying the site doesn’t meet its standards, reports Reuters. According to Amazon, Temu, an e-commerce marketplace that launched in September, does not meet its strict qualification requirements for Amazon’s fair pricing policy. That means some low-priced general merchandise on Temu, owned by PDD Holdings, could beat out prices offered by Amazon’s marketplace sellers.
The pricing algorithm, which uses automated and manual tracking methods, checks products found on and off Amazon to ensure merchants on its marketplace are not charging significantly more than Amazon rivals are.
Amazon is wary of engaging in a price war with competitors it does not consider reputable. The company said its qualification standards ensure that it does not compare or match prices against what is sees as merchandise from questionable marketplaces—including products that might be counterfeit.